Bitcoin 0.39% Rise Turnaround, Silvergate Shock Will Be Short-Term
Bitcoin, which plunged the previous day, succeeded in turning upward, and the impact from Silvergate is expected to end in a daily life.
Bitcoin is recording USD 22,367, up 0.39% from 24 hours ago on CoinMarketCap, a global coin market broadcasting site, on the 3rd.
Bitcoin plunged more than 5% the previous day, threatening to collapse 22,000 dollars. Bitcoin, which plunged the previous day, succeeded in reversing its upward trend.
Bitcoin, which plunged the previous morning, stopped its plunge after 12:00 and remained in the USD 22,300 range. Bitcoin succeeded in reversing its upward trend as it maintained the USD 22,300 range.
Bitcoin plunged the previous day because of the news that “Silvergate Capital,” a cryptocurrency (virtual currency) bank, is facing a bank run (large-scale capital flight).
Silvergate is a traditional bank that is a member of the Federal Reserve, the central bank of the United States. When cryptocurrency emerged, such Silver Gate has faithfully played a role as a gateway to connect cryptocurrency with existing banks.
However, it suffered $1 billion in losses in the fourth quarter of 2022 due to the FTX bankruptcy bankruptcy. In addition, $14 billion of customer deposits were withdrawn through bank runs.
Since then, cryptocurrency-related companies have been suspending transactions one after another as financial difficulties have surfaced. Accordingly, Silvergate postponed submitting its annual 10-K report to the Securities and Exchange Commission (SEC), the U.S. securities supervisory authority, on the 1st.
The 10-K report is a report that all listed companies must submit at the end of the fiscal year under SEC regulations. The report should record all changes and performance of the company during the year. 사설토토
However, Silvergate postponed the submission of this document. In other words, the company is so difficult that it delays the submission of annual documents that must be submitted.
When the news broke, the company’s stock price plunged 58% on the U.S. stock market on the 2nd, the next day.
As a result, Bitcoin plunged the previous day on concerns that the Silver Gate crisis would spread throughout the cryptocurrency world.
However, with the success of the upward reversal, there is a growing possibility that the impact from Silvergate will stop at a daily rate.
Experts say that Silvergate’s crisis has been going on for a long time, and its influence on the market as a whole will be limited as it mainly deals with institutions other than cryptocurrency ants (individual investors).